Judge Reverses His Order Halting Exide Wage Cuts

That's essentially what happened yesterday in the latest round of legal proceedings over a contract dispute between the Reading-based Exide Corp. and United Auto Workers Local 1206.

A week ago today, U.S. District Judge Daniel H. Huyett 3rd gave the union what it wanted - an order halting Exide's move to cut wages and benefits for employees at facilities in Allentown, Denver, Burlington, Iowa and Logansport, Ind., until the issues could be resolved by a federal mediator.

Yesterday, the judge took most of that back by reversing his position on the wage issue. He let stand, however, the portion of the order that restored the medical benefits.

The latest action came as a result of an appeal filed by the company.

The dispute arose out of the company's decision - effective April 1 - to reduce hourly wages at each of its plants, to discontinue medical benefits for future retirees, and to switch insurance carriers - a change the union claims results in reduced medical benefits.

"The judge amended his order filed May 19 to permit Exide wage reductions to stand pending arbitration," said Richard Kimball, Exide's director of personnel.

"The (original) order still stands as to reinstating the medical coverage," which he said the company plans to appeal.

The judge's action is very similar to the position Kimball said Huyett had taken last week. On Friday, Kimball said the judge had reversed his decision on the wage cuts and that yesterday's appeal hearing was just a conference called by the judge "to get both sides together."

Kimball said when he told a reporter last week the judge had already reversed his decision, "I may have been premature. . . . He had not signed the order at that time when we spoke."

Asked if he spoke to the judge, Kimball said: "No." He said he obtained the information from another person, but declined to identify that person.

Kimball said the arbitration proceedings will attempt to determine whether the company can change the economic conditions of the collective bargaining agreement. He said he expects the hearing to be scheduled soon.

Robert Humanick, union president, said, "We are kind of amazed at how the judge could come down with a strong ruling in our favor" and then reverse that because the company agreed to reinstate the medical coverage and go to arbitration on the wages.

Humanick said the judge decided that no irreparable harm would be caused as long as the company reinstated the medical benefits.

However, in his ruling last week, Huyett was quoted as saying he believed the union and its members were "immediately and irreparably harmed" by the cuts.

Humanick said the wage cuts vary from plant to plant. In Allentown, the hourly wage was reduced from $11.70 to $7.35 - a $4.35 an hour cut. The union leader said he did not know what the hourly wages were at the other plants, but the hourly cuts were $2.75 at Logansport, $2 at Denver and $1 at Burlington.

Union attorney William Josem of Philadelphia conceded after last Tuesday's hearing that medical coverage was a separate agreement from the general labor contract and that agreement specified health coverage could not be a matter for arbitration.

However, the company tied the change from Blue Cross/Blue Shield medical coverage to coverage through CIGNA Co. to an economic reopener in the labor pact, he said.

The BC/BS coverage is more extensive.

Jack Sosiak, Exide's vice president of human resources, testified last week that the company switched to CIGNA because it faced a $975,000 increase in premiums for employees at the four plants.